EKTA Partners acted as exclusive financial advisor on UK climate player Reactive Technologies’ oversubscribed Series D
London, 21st May, 2024 — Reactive Technologies, the UK and Finland-based leader in grid stability measurements, successfully completed a Series D funding round. The £25 million funding round ($31.4 million in USD) was led by M& G’s Catalyst investment, alongside Breakthrough Energy Ventures and BGF.
This transaction reflects EKTA Partners’ long-standing commitment to raising equity for climate players, its ability to successfully execute and oversubscribe rounds in a difficult fundraising environment, and its proven track record in bringing quality investors to its clients.
As global renewable energy deployment accelerates, grid operators are grappling with challenges related to grid stability, such as diminishing inertia and system strength. Reactive Technologies addresses these challenges with its pioneering GridMetrix® technology, empowering system operators to monitor power system stability in real time. This capability enables operators to reduce renewable curtailment, prevent blackouts, and optimize spending on balancing services.
Growing Demand for Grid Technologies
The increasing integration of renewables into power systems worldwide is driving a surge in demand for Reactive's technology, including its Tradenergy® software, designed to help short-term power traders navigate the complexities of a renewables-dominated landscape. This most recent investment comes at a crucial juncture as Reactive Technologies strives to meet the escalating demand for its solutions.
M&G’s investment is from Catalyst, a £5 billion purpose-led private assets strategy that invests in innovative companies tackling some of the world’s biggest environmental and social challenges. The investment will further accelerate Reactive's mission to support key players in the global energy transition with real-time data that enables a net-zero future.
Proud of the support from M&G at this pivotal stage in the company's growth, Reactive Technologies' CEO Marc Borrett stated, "This investment from M&G along with our existing investors, BGF and BEV , marks another significant milestone for Reactive Technologies. As we deliver more projects to support the global transition to Net Zero, this backing will empower us to deliver at scale, expand our commercial presence internationally, innovate further, and make a real contribution to a clean energy future."
This funding round follows Reactive Technologies' previous successful funding rounds, including the 2021 investment led by BGF and BEV. The continued support from investors underscores confidence in Reactive's vision and commitment to supporting global decarbonization.
Enabling Net Zero
In the UK, Reactive's GridMetrix® service is estimated to be saving approximately 18 million tonnes of CO2 annually for the UK power system (or approximately 5.5% of total annual UK CO2 emissions). This figure is expected to rise significantly as greater measurement data enables National Grid ESO to safely operate with lower levels of stability, aligning with the pursuit of Net Zero. Globally, GridMetrix® has the potential to mitigate 1,450 million tons of CO2 annually.
The funding announcement comes on the heels of Reactive Technologies' successful entry into the US market, with a large-scale demonstration project in New York State in collaboration with multiple utilities. With additional projects on the horizon in the US, Asia, Europe, and the Middle East, Reactive is poised for substantial commercial growth and will actively increase its workforce to support these initiatives.
"Energy transition is a central theme to our strategy in Catalyst as we seek to invest in innovative solutions that drive environmental progress while delivering sustainable returns for investors,” said Zachary Webb, Head of EMEA Investments in Catalyst, M&G Investments. “We are proud to back Reactive Technologies, which is fast becoming a British success story. Our investment will support the company’s international expansion, potentially transforming how grid systems operate worldwide to reduce unnecessary carbon emissions.”
"The positive experience of our collaboration with Reactive Technologies has been transformative, showcasing the power of direct measurement innovation in advancing the energy transition,” said Julian Leslie, Head of Networks at National Grid ESO. “Collaboration with other power grids is paramount if we are to achieve Net Zero globally. We take pride in pioneering this Net-Zero-enabling technology with Reactive, which now offers a replicable model that can materially contribute to clean energy systems worldwide."
About Reactive Technologies
Reactive Technologies is a grid resilience technology company helping grid operators, electric utilities, and regulators transition to Net Zero and ensure resilient, renewable grids. Reactive’s products, including the first-of-its-kind GridMetrix® technology, bring unprecedented transparency to grid operations by measuring grid inertia and other functions with 95% accuracy, a vast improvement over the projections and estimates they are replacing. Reactive has worked with some of the most advanced electric utilities in the world and consistently delivers accurate grid data that informs better planning, full utilization of electricity supplies, and cost savings while enabling an accelerated transition to clean energy. Reactive is backed by several of the world’s leading sustainability and tech venture and management companies, including M&G, BGF, Breakthrough Energy Ventures, Eaton, Toshiba, and Accenture Ventures. Reactive Technologies is a 2022 Bloomberg New Energy Finance Pioneers winner.